Mr Verwaayen's appointment ends a period of boardroom uncertainty sparked in April by the resignation of Sir Iain Vallance as BT chairman, following a collapse in the firm's share price and concerns over corporate strategy.

While, under the chairmanship of Sir Christopher Bland, BT has gained plaudits for easing a debt burden and retreating to core markets, question marks still remained over the future of Sir Peter Bonfield.

Sir Peter in October revealed he was standing down in January, after six years as chief executive.

Rumour mill

While finance director Philip Hampton had been widely tipped as being groomed as taking over as chief executive, he quit in October after reportedly clashing with Sir Christopher.

Candidates ranging from former Xerox Europe head Pierre Danon to Carlton boss Gerry Murphy were then seen as likely successors.